Blis Technologies forecasts annual loss even as revenue doubles

Monday 29th February 2016

Blis Technologies, the NZX-listed biotech company, expects to post a loss for the year even as revenue more than doubles after it was hit by costs from having to replace stock that had discoloured.

The Dunedin-based company is anticipating a small deficit in earnings before interest, tax, depreciation and amortisation in the year ending March 31, 2016, while sales are expected to increase to more than $5.3 million from $2.5 million a year earlier, it said in a statement. The priobiotics manufacturer previously said in November that it expected to double annual sales and achieve a small pretax surplus after narrowing its first-half loss to $405,000.

An unexpected glitch in the first half was having to take a $350,000 provision for a speckled discolouration of a lozenge product line in Europe. A particular formulation for one European customer found extreme humidity created speckling of the product, which "remains safe although cosmetically unacceptable."

"Although the provision for the replacement of stock into Europe proved sufficient, the company incurred greater than budgeted operating expenses," chairman Peter Fennessy said today.

Blis, which was set up to commercialise probiotic bacteria for use in consumer products, first listed in 2001 and its shares have never again scaled the heights of its first few weeks of trading, when they reached 79.7 cents. It now has 1.1 billion shares on issue, which fell 3.6 percent this morning to 2.7 cents, valuing the company at $29.8 million.

BusinessDesk.co.nz

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